Recent reports have suggested that the US stock market has seen a rare push driven by the positive sentiments about the effects of artificial intelligence (AI) tools like ChatGPT. The S&P 500 index has gained as much as 9 percent this year thanks to optimism around technology advancing corporate profitability.
Stocks from five tech giants, Microsoft, Google, Nvidia, Apple, and Meta Platforms, have played a major role in the market’s rise. In fact, half of the S&P 500’s gains were attributed to the buzz around artificial intelligence. According to Goldman Sachs, by using AI, it could potentially increase the S&P 500’s profits by up to 30% over the next decade.
Societe Generale did its own research and found that removing the 20 stocks tied to the AI-related ETFs from the S&P 500 could would result in a 40 percent drop in the index. This goes to show the importance of AI-driven stocks this year and the market looking ahead optimistically.
Businesses around the world, including British Telecom, have seen a rush to integrate AI tools into their strategies. This has led to an expansive cost-saving measure as, according to reports, BT is planning on slashing 50,000 roles in the next few years, with 10,000 of them set to be replaced by AI, digitization, and automation.
This influx of AI into the market has not gone unnoticed. Stock prices from Microsoft, Nvidia, and others have skyrocketed this year with Microsoft’s share price rising 32%, and Nvidia’s share price jumping a whopping 110%. The Global X Robotics & Artificial Intelligence ETF has gained 30 percent this year.
British Telecom CEO Philip Jansen has commented on how the company will benefit from AI technology, citing that their chatbot Amy already helps with customer queries. He mentioned how AI technology would help with increasing customer services and convenience.
Overall, the launch of ChatGPT and the emergence of other tech giants creating cutting-edge AI tools is projected to bring a massive boost to the US stock market in the upcoming years. Companies will save billions of dollars in cost when they replace human roles with AI, paving the way for improving technological advancements.
